Koch's Aide for Jobs Quits Amid Pressure Of Integrity Inquiry

By RICHARD LEVINE

Published: February 25, 1989

The official in charge of the Talent Bank, a New York City office that has been accused of helping politically connected applicants obtain city jobs, has resigned under pressure, Mayor Edward I. Koch said yesterday.

The official, Joseph DeVincenzo, a special assistant to the Mayor, testified last month to the State Commission on Government Integrity, a panel appointed by Gov. Mario M. Cuomo that has been investigating patronage in the Koch administration as well as other city and state issues.

Mr. DeVincenzo denied that the Talent Bank had been used to dispense patronage. He also testified that what others had described as the systematic destruction of records that would have revealed the true nature of the office was actually the routine disposal of outdated material.

But his testimony caused several commissioners to question his credibility.

At an afternoon news conference, Mr. Koch was asked whether he knew if Mr. DeVincenzo had told the truth. ''I don't know,'' the Mayor said. ''I'm not going to make a judgment about his testimony.''

Mr. Koch released a letter of resignation yesterday that Mr. DeVincenzo wrote to him in which the former assistant defended the Talent Bank, telling the Mayor that he had ''never lost sight of our affirmative action goals.''

Mr. DeVincenzo's telephone number is unlisted. His lawyer, Andrew M. Lawler Jr., said he would have no comment beyond his client's letter.

Mr. DeVincenzo's departure had been expected. The Talent Bank will no doubt be an issue in this year's mayoral race, but because Mr. DeVincenzo's move occurred at the start of the campaign, rather than later on, Mr. Koch may be spared some political damage.

Mr. Koch said he decided last week that Mr. DeVincenzo's effectiveness ''had become impaired as a consequence of the continuing inquiry into the conflicting testimony regarding the handling of Talent Bank documents and that, therefore, he should resign.''

But he said that when First Deputy Mayor Stanley Brezenoff and the Mayor's chief of staff, Diane M. Coffey, met with Mr. DeVincenzo to tell him of the Mayor's decision on Feb. 17, he told them that he had already notified the City Employees Retirement System that he intended to retire in 90 days. Under pressure from the administration, Mr. DeVincenzo made his resignation effective Thursday. Mayor's Stand on Pension Right

Mr. DeVincenzo, who is 45 years old and was paid $104,500 a year, may have been acting to insure that he would receive his pension of slightly more than $50,000 a year. Under city rules, Mr. Koch could have still blocked part of the pension had he dismissed Mr. DeVincenzo within 30 days of the retirement filing.

''Whether or not something occurred here that would cause him to lose his pension is not material that is readily available to me,'' Mr. Koch said, adding, ''I don't think you lightly take someone's pension away.''

The Mayor also said that an assistant to Mr. DeVincenzo, James G. Hein, had given public testimony to the integrity commission that conflicted with testimony he gave the panel in private. Mr. Koch said he would ''take whatever action is appropriate'' regarding Mr. Hein, but would not elaborate.

Mayoral aides said Mr. Hein, who is paid $66,573 a year, was not available for comment. Testimony by Ex-Director

As he has in the past, Mr. Koch again defended his Talent Bank yesterday, saying the computerized placement service had ''met its goal of insuring that city agencies have the widest selection of candidates.''

A spokeswoman for the integrity commission, Linda Sachs, said Mr. DeVincenzo's departure was ''not going to change anything we are doing.''

The Talent Bank was set up, in part, to help place minority and female job seekers in city government. But in testimony before the integrity commission last month, a former director of the office, Nydia Padilla-Barham, said that resumes from those with political sponsors received favorable treatment and that some records were destroyed or altered early in 1986, as the municipal corruption scandals were developing.

She provided a ''black book,'' a record of applicants who had obtained jobs through Talent Bank referrals and their sponsors through July 1985. Reaction by Vance

Mr. DeVincenzo appeared before the commission two days later. His testimony prompted Cyrus R. Vance, former Secretary of State and a panel member, to say there were ''a number of statements'' by Mr. DeVincenzo ''that were not credible.''

The Mayor and his aides have criticized the commission for failing to call witnesses or ask questions that would result in what they contend is a more balanced picture of the Talent Bank or, for that matter, of the hiring philosophy of the Mayor. Mr. Koch has often said he does not practice or condone the patronage common in many cities and states.

Others have faulted the panel for failing to resolve inconsistencies in the testimony it received.

In an interview after the hearings, the panel chairman, John D. Feerick, dean of the Fordham University Law School, defended the focus on the Talent Bank, saying the commission was looking at a ''slice of New York City life having to do with a particular employment-search operation.''

Mr. Feerick also said the commission would pursue the issue of accountability for the Talent Bank. The panel has not announced whether it would hold more hearings on the Talent Bank, but it is generally expected that it will. 'Active Investigation'

At several points yesterday, the Mayor said it would be up to law-enforcement officials to determine whether Mr. DeVincenzo had acted improperly in testifying.

''There is an active investigation into testimony that was taken by the Feerick commission in public and private,'' said Michael G. Cherkasky, chief of the investigation division of the Manhattan District Attorney's office. He would not elaborate.

Known around City Hall as ''Joe D'' but virtually unknown to people outside of city government until the integrity commission hearings, Mr. DeVincenzo was said to have extraordinary command over the often bewildering city bureaucracy. Office Started in '83

Originally employed in the Sanitation Department, Mr. DeVincenzo moved to City Hall in the Beame administration. Under Mr. Koch, Mr. DeVincenzo's power grew. Working out of a basement office, he was reported to have broad influence over such matters as the hiring and promotion of city employees. He was also said to be the man to see if someone wanted a City Hall office painted or a parking sticker for the City Hall lot.

When the Mayor established the Talent Bank in 1983, Mr. DeVincenzo was given responsibility for the office.

After the integrity commission hearings, the Mayor asked his counsel, Henry F. White Jr., and Corporation Counsel Peter L. Zimroth to review the testimony and the Deputy Mayor for Finance and Economic Development, Stanley E. Grayson, to look into the operations of the Talent Bank. It is unclear when the inquiries will be completed.

No successor for Mr. DeVincenzo was named.

Joseph DeVincenzo, who resigned as a special assistant to Mayor Edward I. Koch (The New York Times)